Mutuals drive competition in banking
02 December 2010
Credit unions and mutual building societies say empowering consumers and fairer access to funding are the keys to a more competitive banking market.
"The Senate Inquiry into banking competition has today publicly released our submission setting out specific policy proposals to boost competition," said Abacus CEO Louise Petschler.
"The plan we put to the Senate inquiry has both an immediate and a longer-term focus but we are hopeful proposals that can be implemented quickly will be addressed in the banking reform package to be unveiled soon by Treasurer Wayne Swan," Petschler said.
"Mr Swan is a strong supporter of our sector because of our outstanding track record in providing competition and choice in the banking market for Australian consumers.
"Mutuals offer consumers a different model of banking – a model where the customers own the 'bank'. This allows credit unions and building societies to put their customers first, without the conflict that listed banking institutions face in maximising returns to shareholders.
"In many ways we are already the 'fifth pillar' in Australian banking, due to our market share in household deposits, home loans, transaction accounts and the size of our branch and ATM networks.
"Independent research has verified that people can save thousands if they make the switch to credit unions and building societies – and this is what Australian consumers need to hear.
"It is an extraordinary achievement that mutuals, dwarfed by the major banks, can offer not just better service but better pricing than the major banks. Our sector can perform even more strongly with some Government assistance to grow and diversify our sources of funding and to raise consumer awareness about banking choice," Petschler said.
Our submission can be downloaded here
For more information, please contact:
Pamela Eldridge
Senior Adviser, Media - Public Affairs
(02) 8299 9024; 0423 843 790
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